Wolf Pangloss's Fish Taco Stand

"But, reverend father," said Candide, "there is horrible evil in this world."

"What signifies it," said the Dervish, "whether there be evil or good? When his highness sends a ship to Egypt, does he trouble his head whether the mice on board are at their ease or not?"

"What, then, must we do?" said Pangloss.

"Hold your tongue," answered the Dervish.

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23 April 2008

Soros' Misunderstanding of Financial Markets

I don't have anything to add to what Gerard Jackson wrote about George Soros.
Soros revealed the source of his confusion and ignorance when he admitted that his experience of money markets led him to his present views. (I knew it couldn't have been serious study). This apparent revelation leads him to merely parrot the old cry that financial markets are inherently unstable, leading to breakdowns and depressions. And that this instability led to the evolution of central banks. Yet, according to him, free market "ideologues" (how lefties love that word) argue that it was faulty regulations, not markets, that were really responsible.

Markets are basically stable. What is not stable is monetary policy. And it is faulty monetary policies that destabilise economies. When the gold standard reigned supreme financial markets never witnessed the kind of prolonged financial gyrations that we are now experiencing. These wild fluctuations are basically caused by constant changes, and anticipated changes, in money supplies, price levels and exchange rates.

Read the whole thing to learn a bit about the Austrian School of Economics that Ron Paul began to popularize this Republican primary season.



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Beware of false prophets, which come to you in sheep's clothing, but inwardly they are ravening wolves. Ye shall know them by their fruits.

                Matthew 7:15-16